Key Takeaways
- Tempus AI shares rose 6% today after Bristol Myers Squibb agreed to license Tempus’s oncology data through 2031 and use its Lens AI platform.
- Bristol Myers Squibb is a returning customer committing for years, which suggests Tempus’s data is the real edge in its business.
- Data is Tempus’s most profitable business: data licensing and modeling revenue rose 36% in the second quarter, and gross margin reached 62.7% in 2025.
- Tempus doesn’t say what the deal is worth, so its third-quarter report in early November is the next chance to see what deals like this add.
Tempus AI (TEM) is up 6% today after Bristol Myers Squibb (BMY) signed a multi-year deal to license Tempus’s oncology data through 2031.
Tempus says BMS now “becomes one of Tempus’s largest licensors of de-identified oncology data.”
What exactly happened
Tempus announced the deal before the open:
- BMS will use the data for drug target discovery and development across its cancer portfolio.
- BMS also gets its own setup on Lens, Tempus’s AI platform for oncology drug development, running on dedicated GPU infrastructure where BMS researchers can train and run their own models.
- At the same time, Pathos AI announced deals with both companies to build a curated dataset and AI tools, starting with Alzheimer’s and other neurological conditions.
Tempus didn’t say what BMS is paying.
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BMS came back for more
In May, the two companies agreed to use Tempus’s data to help design five BMS clinical trials in cancer and Alzheimer’s. Now BMS is licensing the data for its own scientists to use through 2031.
When a big drugmaker comes back and commits for years, that’s a strong sign the data is worth paying for.
Data is also where Tempus makes its best margins. In the second quarter, Data and Applications revenue rose 28% to $93.2 million, Insights (data licensing and modeling) grew 36%, and Tempus said data led its 26% gross profit growth. You can see it in the margins…
And it was about 64% in the second quarter.
Data is still only about a quarter of revenue, but the whole business is growing fast. Revenue more than doubled from 2023 to 2025, to $1.27 billion (helped by the Ambry acquisition), and analysts expect nearly double that by 2028:
The 2026 estimate matches Tempus’s own guidance of about $1.6 billion. Since the deal has no price tag, I wouldn’t expect today’s news to move those estimates much by itself.
The market isn’t paying up for it
Tempus closed Thursday at 6.5x forward sales. Today’s gain lifts it to about its 6.7x average for the past year, far below the 11.3x it reached last October:
The main risk is that Tempus is barely profitable. It earned $5.6 million in the second quarter, so the data business has a lot to carry.
My take: Tempus’s data is what sets it apart, and one of the world’s biggest cancer drugmakers just signed up for it through 2031. At a typical multiple for the stock, I like that setup.
Of course, we won’t know what deals like this are worth until they show up in the results. The third-quarter report in early November is the next test, and Insights growth is the number to watch.
So what is Tempus AI stock actually worth?
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